Answer question number 1 from chapter 2, question number 6 from chapter 3 and question numbers 1 and 3 from chapter 4. Submit your answer in a Word document
Chapter2: Q1. What is managerial economics and what are the questions we will try to answer in this course?
Chapter 3: Q6. What is the difference between shifts in supply vs. changes in quantities supplied?
Chapter4: Q1. Assume that a department store was selling a brand of men’s dress shirt at $100.00 per shirt. At that price, the store sold 50 shirts in one week. Next week, the store declared a “sale – buy one get one free”. As a result, sale of the dress shirt increased to 300 in that week. Based on these information, calculate the price elasticity of demand using the arc elasticity formula (p 70-71 of the textbook). What does the coefficient of elasticity indicate?
Chapter4: Q3. Define cross-price elasticity of demand. Explain how the sign of the coefficient of cross-price elasticity (positive or negative) indicates if the two goods are substitute goods or complementary goods.
